Funds injection secures medical insurance

Saru approves budget hike from R25m to R90m to cover players’ image rights

SOUTH African rugby players can expect to have more security when injuries strike after an injection of funds that will go towards their medical insurance kicks in next season.

MyPlayers, the official rugby professional players’ association, has struck a deal with the South African Rugby Union (Saru) and the 14 provincial unions whereby medical insurance is effectively free.

In the past players would pay up to 10% of their monthly salary on medical insurance to cover their needs after unions stopped paying their wages in the event of a long-term injury.

“There are a lot of technicalities but essentially all the employment agreements between players and their unions will change from January 1, 2016,” said MyPlayers managing director Eugene Henning.

“When a player is injured, the employer will still pay what is known as a waiting period. That’s usually a full salary for between three and six months.

“In the past a player’s own insurance would then kick in after that, typically for a period of 12 months.

“The new model means that after the waiting period is over, players will be covered for 24 months and they won’t be paying premiums for that insurance. It’s all taken care of from the increased budget Saru have allocated.”

At its general council meeting last week, Saru approved a huge increase in budget from R25million to R90-million to cover all players’ image rights, as well as their financial security through initiatives such as the medical insurance scheme.

“Because of the saving that players will make on the medical insurance, we’ve compelled them to put a portion away into a pension fund,” Henning said.

“That wasn’t part of the deal with Saru, but rather a decision taken by the players. They felt that because they were all making a significant saving on their medical insurance, they want to put something into their careers after rugby.

“We have our own dedicated pension fund — one of only two in the country — that allows you to retire at the age of 32 and take that payout and put it towards another pension fund [or investment] after rugby.”

In addition to the insurance benefits, the new arrangement secures the collective image rights of all South African professional rugby players for use by their employers.

It means that all 14 provincial unions — as well as the mother body — can use the collective images of their contracted players in marketing material and appearances for sponsors, now that those rights have been secured from MyPlayers.

“It has always been a challenge keeping our players in the country, made ever worse by the weakness of the rand,” said Saru CEO Jurie Roux.

“This new deal that we have struck with the players’ organisation is one part of the effort to retain the skills available. It has meant a realignment of how we budget, but we are convinced that it is a wise investment for players and the game in SA.”

Where the money is coming from is not clear. The next television deal with partners New Zealand, Australia and Argentina begins in 2016 and is much more lucrative than in the past. But neither Saru nor MyPlayers would say where the cutbacks would come to fund the new collective agreement.

“This new deal is just for commercial services where players appear in promotional events,” Henning said. “They will still have individual contracts for rugby playing services with a union, or a union and Saru.”

❛ After waiting period, players will be covered for 24 months